July 31, 2024

Chicago Atlantic Closes $25.5 Million Manufacturing Loan

CHICAGO – July 31, 2024 – Chicago Atlantic Admin, LLC (“Chicago Atlantic”) acted as administrative agent to fund a $25.5 million senior secured credit facility for a U.S. based niche manufacturing corporation. The transaction includes a $20.5 million term loan to both refinance existing debt and provide capital for growth, and a $5 million delayed draw term loan to provide access to working capital.

Niche manufacturing focuses on smaller-scale production of specific, high-quality products, utilizing modern technology and stateside production to optimize control margins and operating costs.1 It is an important element of the manufacturing resurgence within the U.S. economy. The U.S. manufacturing industry is expected to continue growing, with some projections estimating a 3.05% increase from 2023 to 2028, reaching a market volume of $3.59 trillion by 2028.2

“We have a core competency in operationally intensive businesses,” said David Enright, Partner and Head of Direct Lending at Chicago Atlantic. “From production to logistics to sales, we understand the multi-dimensional structure of manufacturers and how to partner for mutual success in a way that reaches beyond traditional financing.”

Chicago Atlantic invests in niche and esoteric opportunities across a variety of industries, particularly in areas of the lower middle-market where the demand for capital exceeds traditional supply.

For more information on manufacturing investment strategies or capital solutions, reach out to David Enright at DEnright@chicagoatlantic.com.

 

1 Global Electronic Services, Inc., July 2024.

2 Statista, July 2024.

About Chicago Atlantic

Chicago Atlantic is a private markets alternative investment manager focused on industries and companies where demand for capital exceeds traditional supply. The firm’s private investment strategies include opportunistic private credit and equity, digital mining and impact investing, with focuses on loans to esoteric industries, specialty asset-based loans, liquidity solutions and growth and technology finance. Chicago Atlantic closed over $2.1 billion in credit facilities to date. Chicago Atlantic’s team of over 80 professionals has offices in Miami, Florida and Chicago, Illinois. For more information on Chicago Atlantic’s financing products, visit chicagoatlantic.com.